ACC 545 Week 5 Lee Corporation Equity Scenario Data

University of Phoenix MaterialLee Corporation Equity ScenarioLee Corporation, a U.S. company, began operations on January 1, 2004During its first 3 years of operation, Lee reported net income and declared dividends as follows:Net incomeDividends declared2004 $ 40,000$ -0-2005 125,00050,0002006 160,00050,000The following information relates to 2007:Income before income tax: $240,000Prior period adjustment: understatement of 2005 depreciation expense (before taxes): $ 25,000Cumulative decrease in income from change in inventory methods (before taxes): $35,000Dividends d